If a family's income increases by 5% at the same time that inflation is 3.5%, then the:
A.
Family will need to spend more in order to maintain its standard of living
B.
Family will need to spend less in order to maintain its standard of living
C.
Family's standard of living is not affected by inflation
D.
Family will need to spend the same amount in order to maintain its standard of living
A.
Family will need to spend more in order to maintain its standard of living
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Twenty years ago, Dr. Montgomery borrowed money from her parents to pay her tuition at graduate school. Now she wants to pay them back. She gives them double what they gave her. According to the rule of 70, what interest rate would have given her parents the same amount of money if they had put it in the bank rather than lending it to their daughter?
a. 3.5 percent b. 4.5 percent c. 5 percent d. 7 percent
U.S. job losses cited by anti-trade critics
A) are mostly a short-term problem in isolated industries. B) are non-existent. C) affect only capital-intensive U.S. industries. D) are mostly due to poor training by U.S. firms.